This should eliminate the homeowner (1) selling a property while remaining liable for the note (subject to), (2) tying  up his property with a “buyer” who has no intent to close unless he finds someone to pay a higher price (wholesaler), (3) paying above market rental for an option to buy that can never be exercised (4) purchasing a property from a fix n flipper who did shoddy rehab, (5) purchasing a property with nebulous legal title, (6) contracting for home improvement with a fly by night contractor who then puts a mechanics lien on the property and (7) “listing” with a wholesaler disguised as a Realtor who doesn’t put the home on MLS. 

Hard Money will fund 90% of the purchase price and 100% of the rehab on a draw schedule.

I’m in Florida, but know enough to tell you that California is cost prohibitive, so yes it is a tough market.  

I do like the smaller properties because occupancy tends to stay pretty high and consistence and costs generally are low, but I know we are also missing out on the really great returns on some of the larger properties. 

VA assistants has dramatically reduced our work in the business and provided 24/7 monitoring for a fraction of the cost of local property management. 

When I have a tenant sign a lease they also sign a document for the cost of repairs when the lease ends.  

Partner Driven financed the W 136th Ave deal using its own capital, covering the $180,000 purchase price and $37,413 in renovation costs.

Also, even with no seasoning, it requires some rehab has been done to use the newly appraised value.

The input costs for operating a STR are a multiple of what they were even 5 years ago.  

Based on the numbers you provided, your cost of capital is higher than your best case cash yield (cap rate).